WINDERMERE, Fla. (Stockpickr) -- Trading stocks that trigger major breakouts can lead to massive profits. Once a stock trends to a new high or takes out a prior overhead resistance point, then it's free to find new buyers and momentum players that can ultimately push the stock significantly higher.An example of a recent successful breakout trade is integrated equipment services player H&E Equipment ( HEES), which I featured in Jan. 3's " 3 Stocks Spiking Higher on Unusual Volume." At that time, shares of HEES were trending higher and starting to move back above its 50-day moving average of $15.15 a share with above-average volume. That move was quickly pushing HEES within range of triggering major breakout trade above some near-term overhead resistance levels at $15.65 to $16.21 a share. >>5 Stocks Under $10 Set to Soar Guess what happened? Shares of HEES triggered that breakout the following day with strong upside volume. The stock tapped an intraday high on Thursday of $17.32 a share and volume finished well above its three-month average action of 248,352 shares. I mentioned in the original piece that HEES could hit $18 to $20 if that breakout triggered soon, and I still feel those targets are achievable. This breakout has now pushed HEES outside of its recent range bound trading pattern with volume, which is bullish technical price action. Breakout candidates are something that I tweet about on a daily basis. I frequently tweet out high-probability setups, breakout plays and stocks that are acting technically bullish. These are the stocks that often go on to make monster moves to the upside. What's great about breakout trading is that you focus on trend, price and volume. You don't have to concern yourself with anything else. The charts do all the talking. >>5 Big Stock Charts You Need to See Trading breakouts is not a new game on Wall Street. This strategy has been mastered by legendary traders such as William O'Neal, Stan Weinstein and Nicolas Darvas. These pros know that once a stock starts to break out above past resistance levels, and hold above those breakout prices, then it can easily trend significantly higher. With that in mind, here's a look at five stocks that are setting up to break out and trade higher from current levels. >>5 Trades to Profit From a January Rally
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